Lorraine Announces Amendment To Stardust Project Option Agreement
December 18, 2018 – Vancouver, British Columbia – Lorraine Copper Corp. (“Lorraine” or the “Company”) (TSXV: LLC), (OTCQB: LRCPF) announces it has entered into an amendment to the Stardust Project option agreement (the “Option Agreement”) between Lorraine and Sun Metals Corp. (“Sun Metals”), an Exchange listed issuer.
Under the amended Option Agreement, Sun Metals’ option to acquire a 100% interest in the Stardust Project is exercisable by issuing 500,000 common shares of Sun Metal and making payment of $75,000 to Lorraine by December 31, 2018, issuing 31,529,315 common shares of Sun Metal within 5 business days of March 31, 2019, and assuming all obligations under the Company’s $50,000 reclamation bond currently posted with the Province of British Columbia. Upon completion of the Option Agreement, the Company will hold approximately 32,530,000 common shares of Sun Metal.
In addition, Sun Metals is required to spend an additional $1,721,469 on the Stardust Project prior to September 30, 2019 (“Remaining Work Commitment”) and, in the event the Remaining Work Commitment is not expended by September 30, 2019, Sun Metals agrees to pay the Company100% of any remaining unspent amount under the Remaining Work Commitment on or before November 30, 2019
On behalf of the Board of Directors
Glen Garratt, P.Geo., VP, Director
Lorraine Copper Corp.
FOR FURTHER INFORMATION REGARDING LORRAINE COPPER PLEASE CONTACT: (604) 681-7913 or (888) 656-6611 (Toll Free) or go to our website: www.lorrainecopper.com
About Lorraine Copper: Lorraine Copper is a Canadian mineral exploration company that is acquiring and advancing copper, gold and molybdenum projects at intermediate to advanced stages that hold significant resources. Lorraine Copper currently owns three properties all of which have defined resources: Lorraine copper-gold (Joint Ventured with Teck Limited), OK copper-molybdenum and Stardust (under option to Sun Metals Corp.). For more information please visit the Company’s website at www.lorrainecopper.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward‐looking statements”. Forward‐looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.
The Stardust Resource
Stardust is a high grade polymetallic Carbonate Replacement Deposit with a rich history. The Canyon Creek copper-gold skarn zone at Stardust was the subject of a 2018, 43-101 compliant resource estimate published by the Company in January 2018. GeoSim Services Inc. provided the following estimate.
Stardust Project – Canyon Creek zone Mineral Resource Estimate(1):
|% Cu Eq|
(1)The cut-off grade used in the resource estimate was 1.5% copper equivalent. Metal price assumptions for the copper equivalent calculation were $3.00/lb Cu, $1.25/lb Zn, $1,300/oz Au and $18/oz Ag. Adjustment factors to account for differences in relative metallurgical recoveries of the constituents will depend upon completion of definitive metallurgical testing. The following equation was used to calculate copper equivalence: Cu Eq = Cu + (Zn x 0.4167) + (Au x 0.6319) + (Ag x 0.0087). A cut-off grade of 1.5% Cu Equivalent represents an in-situ metal value of approximately $100/tonne which is believed to represent a reasonable break-even cost for underground mining and processing. These are not mineral reserves and no work has been completed that demonstrates economic viability at the Project.